January 12, 2011 / 10:21 PM / 7 years ago

UPDATE 1-Canada's Exfo Q1 profit rises on gain from unit sale

* Q1 EPS $0.23 vs $0.01 year ago

* Revenue rises 49 pct to $67.6 mln

* Telecom unit sales jump 63 pct

Jan 12 (Reuters) - Canada’s Exfo Inc (EXF.TO) (EXFO.O), which provides services for the telecommunications industry, posted a higher first-quarter profit, helped by a gain from the sale of a division, and forecast higher second-quarter earnings.

Exfo forecast net earnings of 3-7 cents a share and sales of $70-$75 million for the second quarter. It earned 2 cents a share on revenue of $54.1 million last year.

For the September-November quarter, Exfo earned $14.1 million, or 23 cents a share, up from $334,000, or 1 cent a share, a year earlier.

The company recorded a gain of 21 cents per share from the sale of its Life Sciences and Industrial Division.

In October, Exfo sold the division to private-equity firm The Riverside Co for $24.3 million in cash to focus on its core telecom business. [ID:nSGE6900FP]

Total sales in the first quarter grew to $67.6 million, up 49 percent from last year. Telecom sales rose 63 percent to $65.7 million.

Exfo’s telecom unit serves both wireless and wireline network operators and supports technologies such as 3G, 4G and Long Term Evolution.

“We generated strong sales and bookings growth year-over-year across all our telecom business segments and sales regions, while enjoying expanded traction in the fast-growing wireless market,” Chief Executive Germain Lamonde said in a statement.

The Quebec-based company’s shares, which have gained 28 percent since it reported fourth-quarter results in October, closed at C$7.50 on Wednesday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Anne Pallivathuckal) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

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